Emerging market debt and equities have rallied over the last few months. The main driver? China.
It’s another example of how the world's second-largest economy sets the pace for the rest of the globe — or at least that’s what investors are banking on.
China’s reopening from punitive COVID-related lockdowns last year has invigorated growth prospects across the emerging market landscape, and investors don’t want to miss out on potential gains after the dismal returns of 2022.“Things started rallying mainly on the back of China reopening back in November. That plus more benign inflation coming out of the U.S. really changed the whole mindset toward EM,” Reza Karim, investment manager for EM fixed income at Jupiter Asset Management, tells Axios.
EM sovereign bonds are up 10.6% in the last three months, after a negative 16% return over the prior 10 months, using the JPMorgan Emerging Market Bond Index as a proxy.In addition to ending the economically constricting COVID-zero policies, the government is also easing crackdowns on key areas like
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